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Abstract: The article explores the rising levels of CEO turnover, particularly the disproportionately high rates at which women are leaving leadership roles. It examines the factors driving these trends, including economic uncertainty, increased shareholder pressure, and eroded trust in leadership. The article then delves into the specific challenges faced by women leaders, such as workplace culture issues, isolation, and work-life balance struggles. To address these systemic problems, the article proposes a holistic approach focused on promoting authentic belonging, challenging cultural norms, and ensuring transparency and accountability. By implementing these strategies, organizations can foster an inclusive and supportive environment where all leaders, regardless of gender, can thrive and build enduring careers.
The past few years have seen rising levels of CEO turnover as well as disproportionately high rates of women leaving leadership roles. Today we will explore the research around factors contributing to these trends and provide practical recommendations for organizations seeking to foster an inclusive, supportive culture where all leaders can thrive.
Record-Breaking CEO Turnover
CEO exits have been steadily increasing over the past two decades, with average tenure dropping from around 10 years in the 1990s to just 5-6 years currently (Ferris et al., 2019). However, 2021 saw turnover rates spike to unprecedented levels. According to data from executive search firm Spencer Stuart, CEO departures at S&P 500 companies rose to a new record of 25% in 2021, jumping from 20% in 2020 and more than doubling the historical average of 12-13% (Spencer Stuart, 2022).
Several factors are driving this rise in CEO churn. Firstly, economic uncertainty amid the pandemic and global supply chain issues made leadership roles more challenging (Yale, 2022). Secondly, increased shareholder activism has put greater pressure on CEOs to deliver short-term results, leaving less room for long-term strategic thinking (Laster, 2011). Thirdly, many high-profile failures and scandals have eroded trust in leadership overall, prompting calls for more accountability at the top (Ferris et al., 2019).
While transitions are natural and healthy for companies in some cases, frequent CEO turnover can have significant downsides if not managed properly. It risks destabilizing organizational culture and strategy, damaging employee morale and retention, and complicating succession planning (Berg et al., 2022). When done too often or abruptly, it signals lack of direction that shakes investor confidence (Karaevli, 2007). Succession now represents a make-or-break issue for boards looking to navigate disruption while maintaining leadership stability.
Why Women Leaders Are Leaving in Droves
While CEO turnover is rising across genders, research shows women are nearly twice as likely as men to depart leadership roles—and often for different reasons than their male counterparts (McKinsey, 2021). A closer look at the issues driving women away provides important insights for how companies can build more equitable and supportive environments.
Workplace Culture and Isolation
For many women leaders, culture fit and a lack of true belonging are top pressures pushing them to exit. Surveys consistently show that female executives face more isolation, decreased access to sponsorship networks, and subtle forms of disrespect in comparison to men (Nielsen, 2018). A Gartner study found that 28% of women cite lack of role models or mentors as a factor driving their decision to leave management (Forbes, 2022).
Cultural traits like an overly dominant masculine leadership style can make it harder for women to integrate their authentic selves at work and find allies for support (Meyerson & Fletcher, 2000). Microaggressions, implicit bias, and gender stereotyping also take a psychological toll that accumulates over time. As a result, women CEO tenures average just 3.7 years compared to 5.7 years for men (McKinsey, 2019). The social capital and confidence required to succeed seems in shorter supply.
Work-Life Balance Struggles
Unsurprisingly, work-life integration challenges like long hours, travel demands, and inability to manage family responsibilities are even more problematic for women in top jobs. As primary caregivers, female leaders often shoulder a "double day" that leaves little time for rest (Zabala, 2018). Lack of effective flexible work policies or stigma against taking advantage of existing benefits pushes many women to choose between their careers and personal well-being (Parker & Wang, 2013).
The physical and emotional strain of juggling high-pressure roles with family commitments without real support from employers or partners frequently leads women to exit eventually. A study at Anthropic found 55% of women cite work-life balance as a top reason for leaving tech leadership compared to just 33% of men (Anthropic, 2021). Corporate cultures promoting an always-on lifestyle and face time implicitly favor those without family obligations or health needs.
Building an Inclusively Supportive Culture
Given the disproportionate impact of cultural and work-life issues on women's ability to thrive and persist in leadership, committed efforts to transform organizational dynamics present an opportunity and necessity. Boards and senior teams aiming to foster greater gender diversity in their C-suites and reduce preventable turnover must take a systemic approach focused on inclusion.
Promoting Authentic Belonging
It all starts with ensuring women have fair access to networks, mentors, sponsors, and developmental opportunities on par with men—not as a favor but as a basic right (Carter & Silva, 2011). Formal sponsorship programs help identify and advocate for talented women. But informal belonging also relies on fostering a psychologically safe culture where everyone feels comfortable bringing their whole selves to work.
Subtle biases in performance evaluations, team interactions, and everyday workplace discourse must be eliminated through ongoing, Company-wide unconscious bias training. Leaders should model inclusive behaviors like actively soliciting diverse perspectives and giving credit where due. Recognition programs acknowledging caregivers provide needed social capital. Overall, diversity should become a core organizational value, not just a compliance issue or secondary consideration.
Challenging Cultural Norms
Flexible work policies alone won’t suffice without real cultural acceptance. Discouraging presenteeism, overwork behaviors, and gendered leadership styles expands what “fits” the culture. Changing normative work hours sends an important signal (D’Alesio, 2020). Formalizing flex options through individual work schedules communicates expectation-setting autonomy, not "special treatment."
Family benefits like generous parental leave for all genders, childcare subsidies, eldercare resources, and backup care options reduce the penalty of caregiving responsibilities and signal they won’t curtail career progress. Open communication lets people share challenges discretely getting tailored support. Comprehensive programs ensure work-life balance becomes the standard, sustainable way of operating.
Transparency and Accountability
Measuring diversity metrics annually, conducting confidential employee engagement surveys, publicly sharing goals and progress, and tying executive compensation to inclusion targets entrenches accountability (Bui & Miller, 2020). Exit interviews provide candid feedback on where programs fall short for departing women. Outcomes data drives continuous improvement adapting to evolving needs.
Leaders serve as champions, visibly participating in employee resource groups, mentoring programs, and sponsoring initiatives like women’s leadership conferences. Their active engagement accelerating change management communicates top-level buy-in. Addressing root causes preventing women from thriving as their authentic selves requires ongoing, invested effort—but the return on culture and retention make a compelling business case.
Conclusion
Record CEO turnover, along with the disproportionate rates at which women opt out of leadership, point to systemic issues many organizations still struggle to fully remedy. While market volatility and intensifying shareholder demands explain some churn, root causes like cultural barriers and work-life struggles represent opportunities for improvement within companies’ control.
Fostering an inclusively supportive environment where diverse talents feel they truly belong and can balance responsibilities requires holistic, values-based change management from the top down. Authentic belonging, flexible work cultures, family support programs, and transparency/accountability mechanisms can help retain valuable leaders by addressing sources of strain or attrition particular to women. With women now comprising nearly half the workforce, the business case for prioritizing inclusion to develop untapped potential becomes irrefutable. Slowing turnover and maximizing retention relies on building organizations where people of all backgrounds want to not just work, but build enduring careers.
References
Anthropic. (2021, October 12). Why women in tech leadership positions are leaving. Anthropic. https://www.anthropic.com/blog/why-women-in-tech-leadership-positions-are-leaving
Berg, A., Barry, J., & Chandler, J. (2022, January 19). The rising toll of CEO turnover. Harvard Business Review. https://hbr.org/2022/01/the-rising-toll-of-ceo-turnover
Bui, Q., & Miller, E. (2020, October 28). How companies can create more inclusive cultures for women in leadership. Harvard Business Review. https://hbr.org/2020/10/how-companies-can-create-more-inclusive-cultures-for-women-in-leadership
Carter, N. M., & Silva, C. (2011, March). Women in management: Delusions of progress. Harvard Business Review. https://hbr.org/2011/03/pipeline-problems-still-plague
D'Alesio, S. (2020, November 12). 10 ways to foster a work culture that supports work-life balance. FlexJobs. https://www.flexjobs.com/blog/post/work-culture-that-supports-work-life-balance/
Ferris, S. P., Jayaraman, N., & Lim, S. H. (2019). New CEOs: A survival guide. North American Journal of Economics and Finance, 47, 251–280. https://doi.org/10.1016/j.najef.2018.07.001
Forbes. (2022, March 8). Why women really do leave jobs more often than men: Key factors driving turnover. Forbes. https://www.forbes.com/sites/forbescoachescouncil/2022/03/08/why-women-really-do-leave-jobs-more-often-than-men-key-factors-driving-turnover/?sh=7a76fd8d4cd7
Karaevli, A. (2007). Performance consequences of new CEO 'outsiderness': Moderating effects of pre- and post-succession contexts. Strategic Management Journal, 28(7), 681–706. https://doi.org/10.1002/smj.602
Laster, D. (2011, September). Benefit-cost analysis and shareholder value. The Modern Corporation, 94. https://doi.org/10.2139/ssrn.2593539
Meyerson, D., & Fletcher, J. K. (2000). A modest manifesto for shattering the glass ceiling. Harvard Business Review, 78(1), 127-136.
McKinsey & Company. (2019). Women in the workplace. https://www.mckinsey.com/featured-insights/gender-equality/women-in-the-workplace-2019
McKinsey & Company. (2021). Women in the workplace. https://www.mckinsey.com/featured-insights/diversity-and-inclusion/women-in-the-workplace#part-1
Nielsen. (2018, March 15). The glass cliff: Where women leaders face higher risks after breaking the glass ceiling. Forbes. https://www.forbes.com/sites/erikaince/2018/03/15/the-glass-cliff-where-women-leaders-face-higher-risks-after-breaking-the-glass-ceiling/?sh=3a3db83a2e71
Parker, K., & Wang, W. (2013, March 14). Modern parenthood: Roles of moms and dads converge as they balance work and family. Pew Research Center. https://www.pewresearch.org/social-trends/2013/03/14/modern-parenthood-roles-of-moms-and-dads-converge-as-they-balance-work-and-family-2/
Spencer Stuart. (2022). 2022 Spencer Stuart board index. https://www.spencerstuart.com/research-and-insight/publications/business-outlook-2023
Yale, S. O. (2022, February 7). CEO departures rise again as pandemic pressures mount. Society for Human Resource Management. https://www.shrm.org/resourcesandtools/hr-topics/employee-relations/pages/ceo-departures-rise-again-as-pandemic-pressures-mount.aspx
Zabala, D. (2018, September 11). The double burden of caregiving. Stanford Social Innovation Review. https://ssir.org/articles/entry/the_double_burden_of_caregiving#
Jonathan H. Westover, PhD is Chief Academic & Learning Officer (HCI Academy); Chair/Professor, Organizational Leadership (UVU); OD Consultant (Human Capital Innovations). Read Jonathan Westover's executive profile here.
Suggested Citation: Westover, J. H. (2025). Understanding Rising CEO Turnover and How to Address Workplace Issues Driving Women Leaders Away. Human Capital Leadership Review, 17(3). doi.org/10.70175/hclreview.2020.17.3.1
